Economist Podcasts The Intelligence: China’s ever grander property crisis
Jan 30, 2024
China's property crisis deepens as Evergrande faces court-ordered liquidation, leaving homebuyers and creditors in chaos. The fallout prompts public protests and complicates the property market landscape. On the political front, discussions arise around Biden's leadership challenges and potential 2024 contenders amid party discontent. The podcast also spotlights the 1972 Munich Olympics, reflecting on the tragic hostage crisis involving the Israeli team and its lasting impact on Israeli identity and policy.
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Evergrande's Impact
- Evergrande, with over $300 billion in liabilities, is central to China's property crisis.
- A Hong Kong judge ordered Evergrande's liquidation, impacting China's property market.
Evergrande's Downfall
- In 2020, China restricted property developers' debt, impacting Evergrande in 2021.
- Evergrande, owning 870 projects across nearly 300 Chinese cities, defaulted in late 2021.
Impact of Default
- Evergrande's default froze property developments, impacting buyer confidence.
- The default also discouraged investments in property developer debt, further squeezing capital.